OCBC Report 6 Mar 14

KEY IDEA United Envirotech: Upgrade to BUY United Envirotech Ltd (UEL) has recently announced that it has won a contract worth RMB580m (S$120m) to design and build China’s largest MBR (membrane bio-reactor) waste-water treatment. In view of the latest order win, we bump up our FY15F revenue forecast by 8% and earnings by 4%. Still based on an unchanged 20x FY15F EPS, our fair value inches up from S$1.30 to S$1.36. And because of the recent pullback in UEL’s share price (post-results profit-taking), we note that there is now a healthy 15% upside, and hence we upgrade our rating from Hold to BUY. (Carey Wong)

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NEWS HEADLINES - The S&P 500 finished almost flat, just below its all-time high as investors shrugged off soft data on jobs and the services sector while keeping an eye on developments in Ukraine. - Securities trading on SGX extended its downtrend, falling 35% YoY to S$20.9b in Feb, amid uncertainties in global markets and the regulators' raft of tougher measures on stock trading. - Genting HK may sell its remaining 27.7% stake in Norwegian Cruise Line Holdings, a disposal that could realise a minimum gain of US$389.2m, or US$1.23b at the prevailing Nasdaq price. - Loyz Energy yesterday announced it would be acquiring a 20 per cent stake in Norwegian oil and gas exploration firm Fram for US$41.4m. - Ezra Holdings has clinched subsea construction and offshore support contracts and options in the Asia Pacific and West Africa worth more than US$125m. - Global Yellow Pages said it plans to place up to 300m new shares to raise as much as S$20.8m. - Shares of all but one company that just entered the SGX watch-list slumped yesterday, with Cacola falling by as much as 24%. - Swiber locks in gains from Kreuz sale completion with a net gain of US$90.6m, likely to be booked in the next set of financial results.